After a tough first year in power, Labour Prime Minister Keir Starmer and his Chancellor of the Exchequer, Rachel Reeves, made a significant push to regain the public’s trust on Wednesday, June 11.
The pair took advantage of the spending review, which sets the budget allocation for major sectors up to 2029, to try and reverse their declining popularity.
Reeves laid the groundwork for this revival just the day before, confirming that she would reverse one of her first major decisions from when she took office in July 2024—cutting the energy allowance for pensioners.
This decision, which impacted 11 million Britons, had severely damaged Labour’s standing, contributing to their poor performance in the local elections on May 1. The cut also revealed a shift in voter preferences, with the far-right Reform UK party becoming more popular among working-class voters.
In a bid to recover, the Chancellor announced over £110 billion in new investments. This money will fund a new nuclear power plant (Sizewell C in Suffolk) and improve several rail links in central and northern England, areas that had long been neglected by previous Conservative governments.
The NHS, which is a vital part of British society, will receive nearly £30 billion per year in additional funding to maintain and improve its services. As for defense, Starmer’s government will increase the defense budget, ensuring that it rises to 2.6% of the UK’s GDP by April 2027.
Keir Starmer and Rachel Reeves unveiled a new spending plan aimed at restoring Labour’s popularity after a tough first year. The plan includes investments in nuclear power, infrastructure, healthcare, and defense. The reversal of an unpopular pensioners’ energy allowance cut also aims to win back voters’ support.